Kimbell Royalty Partners Raises Quarterly Distribution 6% to $0.37
Kimbell Royalty Partners, LP (NYSE: KRP), an oil and gas mineral and royalty interest owner, declared a quarterly cash distribution of $0.37 per common unit, up from $0.35 in the prior quarter. The payment is scheduled for March 25, 2026.
Kimbell Royalty Partners, LP (NYSE: KRP), an oil and gas mineral and royalty interest owner, declared a quarterly cash distribution of $0.37 per common unit for the fourth quarter of 2025. The distribution represents a 6% increase from the $0.35 per unit paid in the third quarter. Read more dividend announcements.
The partnership's board of directors approved the payment on February 26, 2026. Units will trade ex-distribution starting with the record date, with the distribution payable to unitholders of record as of March 18, 2026.
Based on the February 25, 2026 closing price of $14.13 per common unit, the distribution implies an annualized yield of 10.5%.
| Distribution Details | Information |
|---|---|
| Amount per Unit | $0.37 |
| Record Date | March 18, 2026 |
| Payment Date | March 25, 2026 |
| Type | Quarterly Cash Distribution |
| Change from Prior Quarter | +6% (from $0.35) |
The distribution represents 75% of cash available for distribution for the fourth quarter. Kimbell plans to use the remaining 25% to repay approximately $13.4 million of outstanding borrowings under its secured revolving credit facility.
The partnership expects approximately 100% of the fourth quarter 2025 distribution to be classified as a non-taxable return of capital for U.S. federal income tax purposes, rather than dividend income. This reduces unitholders' tax basis in their units and increases capital gain or decreases capital loss when units are sold.
Fourth Quarter Operating Results
Kimbell reported fourth quarter 2025 run-rate daily production of 25,627 barrels of oil equivalent per day, exceeding the midpoint of guidance. Oil, natural gas and natural gas liquids revenues totaled $76.0 million for the quarter.
Net income for the quarter was $24.8 million, with net income attributable to common units of $19.2 million. Consolidated adjusted EBITDA reached $64.8 million.
As of December 31, 2025, Kimbell owned mineral and royalty interests in over 133,000 gross wells across 28 states. The partnership had 85 rigs actively drilling on its acreage, representing 16% market share of all land rigs drilling in the continental United States at year-end.
Proved developed reserves increased approximately 8% year-over-year to a record of nearly 73 million barrels of oil equivalent, reflecting continued development activity and acquired reserves.
In December 2025, Kimbell amended and extended its secured revolving credit facility through December 16, 2030, reaffirming borrowing base and elected commitments of $625 million while lowering its cost of bank debt financing by 35 basis points.
2026 Guidance
Kimbell initiated full year 2026 production guidance with estimated daily production at the midpoint of 25,500 barrels of oil equivalent per day, unchanged from the 2025 guidance range. The high-end projection is 27,000 Boe/d and the low-end projection is 24,000 Boe/d.
The partnership's five-year annual average proved developed producing decline rate of 14% requires an estimated 6.8 net wells annually to maintain flat production, compared to 7.1 net line-of-sight wells currently available.